Vargas Company has 35 employees who work 8-hour days and are paid hourly. On January 1, 2019, the company began a program of granting its employees 10 days of paid vacation each   year. Vacation days earned in 2019 may first be taken on January 1, 2020. Any days not taken in one year can be carried forward for up to two years. Information relative to these employees is as follows: (5 points)

                   Hourly              Vacation Days Earned    Vacation Days Used

Year            Wages               by Each Employee         by Each Employee

2019           $11.50                             10                                       0

2020             12.50                             10                                       8

Vargas has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is earned.  

a. What is the amount of expense relative to compensated absences that should be reported on Vargas’s income statement for 2019?  (To receive credit for your answer, you must show all supporting computations.)

b. What is the amount of the accrued liability for compensated absences that should be reported at December 31, 2020? (To receive credit for your answer, you must show all supporting computations.)

Indigo Company sponsors a defined benefit plan for its 100 employees. On January 1, 2020, the company’s actuary provided the following information. Accumulated other comprehensive loss (PSC) $151,900 Pension plan assets (fair value and market-related asset value) 198,500 Accumulated benefit obligation 256,900 Projected benefit obligation 379,200 The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. On December 31, 2020, the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $47,200; the projected benefit obligation was $499,500; fair value of pension assets was $271,500; the accumulated benefit obligation amounted to $362,700. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual return on plan assets is $10,000. The company’s current year’s contribution to the pension plan amounted to $63,000. No benefits were paid during the year.

Determine the components of pension expense that the company would recognize in 2020. (With only one year involved, you need not prepare a worksheet.)

Whispering Company began operations on January 2, 2019. It employs 12 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows. Actual Hourly Wage Rate Vacation Days Used by Each Employee Sick Days Used by Each Employee 2019 2020 2019 2020 2019 2020 $7 $8 0 10 5 6 Whispering Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned.

I need help recording sick leave paid. The entries are

Debit: Salaries and wages expense

Debit: Salaries and wages payable

Credit: cash

I do not know how to calculate the numbers.

Please show work on calculations

​Americo's Earnings and the Fall of the Dollar. Americo is a​ U.S.-based multinational manufacturing firm with ​ wholly-owned subsidiaries in​ Brazil, Germany, and​ China, in addition to domestic operations in the United States. Americo is traded on the NASDAQ. Americo currently has

660,000

shares outstanding. The basic operating characteristics of the various business units is as​ follows:  ​(Click on

the   

icon to import the table into a​ spreadsheet.)

Americo must pay corporate income tax in each country in which it currently has operations.

a. After deducting taxes in each​ country, what are​ Americo's consolidated earnings and consolidated earnings per share in U.S.​ dollars?

The dollar has experienced significant swings in value against most of the​ world's currencies in recent years.

b. What would be the impact on​ Americo's consolidated EPS if all foreign currencies were to appreciate

20%

against the U.S.​ dollar?c. What would be the impact on​ Americo's consolidated EPS if all foreign currencies were to depreciate

20%

against the U.S.​ dollar?

a. After deducting taxes in each​ country, what are​ Americo's consolidated earnings and consolidated earnings per share in U.S.​ dollars?

Calculate the business performance per country​ below:  ​(Round to two decimal places. Round exchange rates to four decimal​ places.)

​Americo's Earnings and the Fall of the Dollar. Americo is a​ U.S.-based multinational manufacturing firm with ​ wholly-owned subsidiaries in​ Brazil, Germany, and​ China, in addition to domestic operations in the United States. Americo is traded on the NASDAQ. Americo currently has

641,000

shares outstanding. The basic operating characteristics of the various business units is as​ follows:  ​(Click on

the   

icon to import the table into a​ spreadsheet.)

Americo must pay corporate income tax in each country in which it currently has operations.

a. After deducting taxes in each​ country, what are​ Americo's consolidated earnings and consolidated earnings per share in U.S.​ dollars?

The dollar has experienced significant swings in value against most of the​ world's currencies in recent years.

b. What would be the impact on​ Americo's consolidated EPS if all foreign currencies were to appreciate

21%

against the U.S.​ dollar?c. What would be the impact on​ Americo's consolidated EPS if all foreign currencies were to depreciate

21%

against the U.S.​ dollar?

a. After deducting taxes in each​ country, what are​ Americo's consolidated earnings and consolidated earnings per share in U.S.​ dollars?

Calculate the business performance per country​ below:  ​(Round to two decimal places. Round exchange rates to four decimal​ places.)

In the open economy macroeconomic model, which of the following is included in the supply of U.S. dollars in the market for foreign-currency?
(x) Nebraska Life, a U.S. life insurance company, wants to buy a Japanese government bond.
(y) ABC Securities, a U.S. stock brokerage, wants to purchase stock issued by a French corporation.
(z) Tony, a U.S. citizen, wants to hold more currency in case of emergencies.
A. (x), (y) and (z) B. (x) and (y) only
C. (x) and (z) only D. (y) and (z) only
E. (x) only

According to the open-economy macroeconomic model, which of the following statements is (are) correct?
(x) In the open-economy macroeconomic model, if for some reason foreign citizens want to purchase more U.S. goods and services at each exchange rate, then the demand for dollars in the market for foreign-currency exchange shifts right.
(y) If foreign citizens want to buy fewer U.S. bonds, then the demand for U.S. dollars in the market for foreign currency exchange will shift to the right
(z) If the real exchange rate for the dollar is below the equilibrium level, the quantity of dollars supplied in the market for foreign-currency exchange is less than the quantity demanded and the dollar will appreciate.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

which of the following statements is (are) correct?
(x) A trade policy is a government policy that directly influences the quantity of goods and services that a country imports or exports.
(y) An “import quota”.is a limit on the quantity of a good that can be produced abroad and sold domestically.
(z) A tax on imported goods is called a tariff.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

Worldcom was a high performing stock and a darling of Wall Street investors. The company's management had repeatedly fulfilled its objective to maximize profits and the stock's price, yet somehow the company failed.

• What are the major causes of the Worldcom collapse?
• What does the Worldcom collapse tell you about audited financial statements?
• If Worldcom's CEO and CFO were simply doing their job to maximize profits, why then did they go to prison?
• What comment can you make about Worldcom's corporate governance (i.e., Board of Directors)?
• Who was the heroine of the Worldcom scandal?

Net Present Value

An organization’s initial outlay for a proposed capital budgeting project is $1,000,000. Use the table below to calculate the net present value.

You are the CEO of the company. If the firm’s cost of capital is 8%, how likely would you be to approve this project when the net present value is $1.00? Would you be more or less likely to approve the project if the net present value were $100,000.00?

2. You are an executive for a manufacturing company. You have just attended a meeting in which the CEO has approved a new production method that may leak poison into a river and endanger the salmon spawn. You have always been concerned about the environment and you are very much against endangering the salmon spawn. You have to decide whether you are going to oppose this decision or remain silent. List the three most important considerations that are affecting your decision in this ethical dilemma.

3. Give an example of another ethical dilemma.